Report says construction sector’s contribution to the GDP reached 6.4% in 2018, compared to 6.2% in both 2016 and 2017
According to a report published by the Dubai Land Department (DLD), Dubai’s real estate sector is making a significant contribution to the emirate’s GDP growth, with figures noting a 13.6% growth last year compared to 6.9% in 2017 and 6.8% in 2016.
Titled ‘Annual Report: Real Estate Sector Performance 2019’, it stated that improvements in the performance of the real estate sector was accompanied by improvements in economic growth rates across Dubai.
Meanwhile the contribution from Dubai’s construction sector to the GDP reached 6.4% in 2018, compared to 6.2% in both 2016 and 2017, it stated while the value of the gross domestic product in Dubai reached $108 billion in 2018, compared to $106 billion in 2017, with a GDP growth rate of 1.9% in 2018.
Sultan Butti Bin Mejren, director general of DLD, said: “We continue to support the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and commit to his wise directives, to strengthen Dubai’s position as a global economic capital, by cooperating with developers from the public and private sectors.”
He added: “Though the real estate sector reflects the development achieved by the Emirate across all fields, it does not come without its challenges.”
“On the one hand, we have to continue this momentum, which has been achieved through promotional initiatives at the local and global levels through our exhibitions in prominent Arab and international capitals. On the other hand, we should ensure transparent communication and openness to all investors and other parties in this sector,” he further noted.
The report also stated that Dubai’s real estate sector progressed in global competitiveness indicators, too. In the ease of doing business index, the UAE delivered outstanding results by ranking 11th globally, having advanced ten ranks among 190 countries.
Meanwhile, to stimulate the GDP growth, the Government of Dubai has launched a series of initiatives to promote the growth process and increase the economic activities in the Emirate such as reducing the cost of doing business, providing facilities to entrepreneurs and modifying the length of stay.
Incentives such as providing long-term residence of up to ten years for investors and those with outstanding skills, in an effort to attract competencies in the scientific and practical fields as well as to support demand in the local market, have also been introduced.
Mejren added: “We wish this report to become a reference for researchers that showcases the prestigious position of our economy and its momentum as we aim to achieve the ultimate goal of positioning Dubai ahead of all major cities in the world.”